Temu Places Goods Focus on Europe

Since the implementation of new U.S. tariffs, Temu has significantly shifted its marketing strategy, moving away from its previous U.S.-focused expansion model. The company has cut its American advertising budget by nearly half, responding to increased operating costs and new trade restrictions that have made ultra-cheap imports less viable in the U.S. market.

In response, Temu has set its sights on Europe, where regulatory pressures are currently less intense. The company has more than doubled its marketing investments in the UK and increased ad spending by 115% in France, aiming to capture new audiences in these rapidly growing e-commerce markets.

This pivot reflects Temu's goal of diversifying its customer base while maintaining its global growth momentum. So far, the strategy is yielding mixed results. App downloads have surged across Europe, signaling strong initial interest from shoppers intrigued by Temu’s low-cost offerings.

However, active user growth—the number of people who regularly shop on the platform—has grown at a slower pace. Analysts suggest this could be due to lingering concerns over product quality, delivery times, or unfamiliarity with the brand in new markets.

In the UK and other European countries, lawmakers have recently raised concerns about Temu’s sourcing practices, especially after similar concerns surfaced in the U.S. As Temu adjusts its European approach, it remains to be seen whether this push will lead to sustained growth or present new challenges.